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Consumer Behavior Report CONSUMER BEHAVIOR REPORT
April 2009
Mobile Internet Shopping Trends
Designed to give media, industry analysts, and merchants insight into online consumer
behavior
Executive Summary
Mobile technology may finally have reached an inflection point where the mobile Internet
could be another viable consumer resource for online shopping and purchasing.
According to PriceGrabber.com’s Mobile Shopping Behavior Survey, 58 percent of US
online consumers already own a Web-enabled mobile phone. Furthermore, of those
consumers that own a Web-enabled mobile phone, one in 10 has purchased products
and/or services with their device. Although online consumers said the lengthy purchase
process (38%) and challenges they face with completing a purchase transaction (28%)
are preventing them from purchasing online from their mobile phone, 17 percent indicated
they still engage in online shopping activities. As Web-enabled phone adoption continues
to grow, with improvements in smartphone hardware and advances in mobile network
service, more and more online consumers will interact with and purchase from the Web
via their device.
Mobile Internet consumer adoption is more widespread in the UK compared to that of the
United States. More than two-thirds of UK online consumers own a mobile phone capable
of connecting with the Internet and 64 percent own a 3G compatible Web-enabled mobile
phone enabling them to make more secure and substantial purchases with their credit
cards from their mobile phones.
What is the PriceGrabber.com Consumer Behavior Report?
The Consumer Behavior Report is designed to give media, industry analysts, and
merchants insight into online shopping trends, purchasing behavior, product pricing and
market share. Each month, a different topic will be the focus of the report.
The Mobile Internet Shopping Trends report examines data sourced from 3,865 (3,305 US
& 560 UK) online consumers who completed the Mobile Shopping Behavior Survey,
fielded from March 10, 2009 to March 31, 2009, and Market Reporter, a statistical
database that tracks actual consumer shopping behavior on PriceGrabber.com (see page
11 for survey methodology).
PriceGrabber.com, a leading comparison shopping engine, has 26 million unique users
per month and up-to-date daily pricing on millions of products supplied by more than
13,000 sellers. PriceGrabber.com also has an iPhoneTM Mobile App coming soon
http://www.pricegrabber.com/iphone_promo.php to provide consumers with a fast and
easy mobile comparison shopping experience to make smarter purchase decisions on the
go.
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Mobile Internet Shopping Trends
PriceGrabber.com provides insight on current and future mobile Internet usage, specific to
online consumers’ shopping and purchasing behaviors. This study is based on the Mobile
Shopping Behavior Survey findings from 3,865 online consumers with mobile phones in
the United States and the United Kingdom. While the mobile Internet has not developed
as quickly on a global scale as many predicted, online consumers have made significant
headway in Web-enabled mobile phone adoption and mobile Internet usage.1
Mobile Internet Shopping Trends – U.S. Online Consumers
In the past year, advancements in network technology and improved platforms have
contributed to the widespread consumer adoption of feature-rich Web-enabled mobile
phones that provide a more appealing mobile Internet user experience. As a result, online
consumers with Web-enabled phones are slowly adopting the mobile Internet.
According to PriceGrabber.com’s Mobile Shopping Behavior Survey, online consumers
seem to be closing the mobile Internet usage gap as 48 percent have used mobile GPS
and 17 percent have shopped online (see Table 8). Furthermore, one in 10 online
consumers with a Web-enabled mobile phone has purchased online and 16 percent have
compared prices from their mobile phones (see Table 5).
• Web-enabled mobile phone penetration is significant. Nearly two-thirds of US
online consumers own a mobile phone capable of connecting with the Internet. The 58
percent of online consumers with Web-enabled phones are segmented accordingly:
21 percent own a smartphone, eight percent own an iPhoneTM, and 29 percent own
another type of Web-enabled phone. The remaining 42 percent of online consumers,
later evaluated in this study for future mobile Internet usage, indicated owning a non
Web-enabled phone capable of voice and text service plans only (see Table 1).
[Table 1] US Online Consumers:
W hat type of mobile phone do you ow n?
8% 0%
21%
42%
29%
Non Web mobile phone (i.e. voice and text capabilities only)
Web-enabled phone (i.e. voice, text and data capabilities)
Smartphone (e.g. Blackberry, other)
A pple iPhone
I don't ow n a mobile phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 2: What type of mobile phone
do you own? | n = 3,305 US Online Consumers
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_01
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CONSUMER BEHAVIOR REPORT
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• Data service plans weather the tough economy. According to the table below from
the Mobile Shopping Behavior Survey in March 2009, most online consumers don’t
expect to change their mobile phone budgets; however, 15 percent expect to spend
less on their voice plan and seven percent said they expect to spend more on a data
plan in the next year (see Table 2).
[Table 2] As a result of the economic climate, how do you expect your budget
for mobile phone voice, text or data to change, if at all in the next 12 months?*
Data Plan 7% 69% 14% 10%
Texting Plan 5% 75% 13% 7%
0%
Voice Plan 4% 81% 15%
Spend More No Change Spend Less I don't have this service plan
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 6: As a result of the economic climate,
how do you expect your budget for mobile phone voice, text or data to change, if at all in the next 12 months? |
n = 1,712 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_02
• Smartphone purchases amongst online consumers have risen dramatically
since 2006. The iPhone, released on June 29, 2007, jump-started mainstream
smartphone adoption; with 75 percent more online consumers purchasing their first
Web-enabled phone in 2007 compared to 2006 (see Table 3; 2006: 12% & 2007:
21%). In 2008, thanks to the popularity of the iPhone™ 3G, T-Mobile G1™, and
BlackBerry® smartphones, 17 percent more online consumers purchased their first
Web-enabled mobile (see Table 3; 2008: 24%).
• Despite the economic climate, eight percent of online consumers said they purchased
their first Web-enabled phone in the first quarter of 2009 (see Table 3). The 2007
iPhone launch was a watershed for smartphone adoption and a catalyst for
widespread consumer awareness of the mobile Internet. There are now more than 40
million active monthly users of the mobile Internet in the U.S. alone, according to
Nielsen Mobile -- a 73 percent increase since 2006. 2
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CONSUMER BEHAVIOR REPORT
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[Table 3] In w hat year did you purchase your first
W eb-enabled mobile phone?*
24%
21%
12%
9%
7% 8%
6%
Y ear 2003 Y ear 2004 Y ear 2005 Y ear 2006 Y ear 2007 Y ear 2008 Y ear 2009
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 3: In what year did you purchase your
first Web-enabled mobile phone? | n = 1,716 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_03
• Technology has advanced enough to entice consumers. Nearly half (48 percent)
of online consumers with Web-enabled phones own a 3G attuned mobile phone (see
Table 4). From 3G networks to better developed platforms (e.g. Android, BREW,
Access Linux platforms), it appears that the technology required for a fast and secure
enough mobile Internet user experience is finally in place.
[Table 4] US Online Consumers:
Is your current W eb-enabled phone 3G
compatible?*
25%
48%
27%
Y es No Unsure
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 4: Is your current Web-enabled phone
3G compatible? | n = 1,728 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_04
• One in 10 online consumers uses their Web-enabled phone to purchase online.
When consumers navigate the Web, they expect a high-quality experience whether
they are on a mobile device or at their desktops.3 The table below shows online
consumers’ online shopping behavior on a desktop or laptop compared to a mobile
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CONSUMER BEHAVIOR REPORT
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phone. Of the audience of online consumers who purchase online from a desktop or
laptop, the most common shopping behaviors are comparing prices (72%) and
researching product details/specifications (67%). Some of these consumers have
adopted the same shopping behaviors from a mobile phone. One in 10 online
consumers has purchased online from their mobile device; 16 percent compared
prices and another 16 percent researched product details/specifications (see Table 5).
[Table 5] How do you shop online from your desktop/laptop? W eb-enable d mobile
phone?* Select all that apply
100%
72%
67%
55% 55%
48%
16% 16%
10% 14% 9% 8%
I purchase online I “ window shop” or I compare or check prices I research product I check for product I check for sales and
browse for products details/specifications availability coupons
Desktop/Laptop W eb-enabled Mobile Phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 7: How do you shop online from your
desktop/laptop? Select all that apply | Question 8: How do you shop online from your mobile phone? Select all that apply |
n = 1,539 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_05
• Apps and electronics are the leading mobile phone purchases. Of those 10
percent of online consumers who have purchased from their mobile phone, the
majority (58 percent) indicated that they have used the mobile Internet to purchase
digital content for their phone (see Table 6). Although some consumers have not
moved beyond basic mobile personalization and casual gaming, some online
consumers have made substantial purchases from their mobile phones, such as:
consumer electronics (51%), computers (37%), books (36%), clothing (20%), and
jewelry (20%).
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[Table 6] W hat types of products have you purchased from your
mobile phone in the past 12 months?* Select all that apply
Digital content f or my mobile phone (e.g.
58%
ringtones, A pps, music, video clips)
Consumer electronics 51%
Computers, laptops or related equipment 37%
Books 36%
Clothing 31%
Jew elry and w atches 20%
Other 6%
10% of Cons um e rs Who Purchas e fr om the ir M obile Phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 8: How do you shop online from your
mobile phone? Select all that apply | n = 157 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_06
• Online consumers concur that the online buying experience prevents them from
purchasing via their mobile phone. According to online consumers with Web-
enabled phones, the main reasons preventing them from purchasing from their mobile
phones are: the process takes too much time (38%), and the transaction is too difficult
to complete (28%) (see Table 7). Surprisingly, only 15 percent of online consumers
said that they don’t purchase online from their mobile phone because their phone
doesn’t support secure credit card transactions.
[Table 7] W hat has been preventing you from purchasing
(or purchasing more) from your mobile phone?*
Select all that apply
The purchase process takes too much time 38%
Transactions are too dif f icult to complete 28%
Other 24%
Products are too dif f icult to f ind 17%
My mobile phone doesn’t support secure credit
15%
card transactions
58% of Total Online Cons um e rs w ith a We b-e nable d M obile Phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 10: What has been preventing you from
purchasing (or purchasing more) from your mobile phone? Select all that apply | n = 1,474 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_07
• Mobile commerce begins with mobile activity. With the evolving mobile Internet,
online consumers with Web-enabled phones can now make informed purchase
decisions from anywhere by checking their bank account balance (25%) and
comparing online prices (17%) through a mobile phone (see Table 8). Online
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CONSUMER BEHAVIOR REPORT
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consumers also use their mobile phone for daily weather forecasts (55%), driving
directions (48%), news updates (47%), and movie times and restaurant reviews (34%)
to stay up-to-date.
[T able 8] Have you engaged in any of the following online activities from your
mobile phone in the past 12 months?* Select all that apply
Weather 55%
Driving directions (e.g., GPS, traff ic, maps) 48%
New s Updates 47%
Entertainment (e.g., movie times, restaurant review s) 34%
Games 31%
Sports (e.g., scores, game times) 28%
Financial Updates (e.g., stocks, bonds) 24%
Banking (e.g., view account, complete transactions) 25%
Social Netw orks (e.g., Facebook, LinkedIn, Tw itter) 22%
Online shopping (e.g. compare prices, purchase) 17%
Travel (e.g., book reservations) 16%
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 11: With many online companies
creating mobile phone applications and websites simplified for mobile navigation, have you engaged in any of
the following online activities from your mobile phone in the past 12 months? | n = 1,501 US Online Consumers
*Data filtered by US Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_08
• Mobile phone usage is evolving and the Millennial Generation is quick to adopt
the mobile Internet. The Millennial Generation uses a mobile phone to browse the
Web and text more often than the average online consumer. Online consumers were
asked to rank how often they do the following activities: place phone calls, text
message, email, browse the Web, and instant message. The younger generation
ranked browse the Web as #3, in terms of mobile phone usage, slightly before email,
3.19 and 3.26 respectively (see Table 9). Whereas the average online consumer
clearly ranked email as #3 before browsing the Web, 3.18 and 3.48 respectively.
Another difference that sets the youngest generation apart from average online users
is they text message more often than they place phone calls (see Table 9).
[Table 9] Which activities do you do most often on your mobile phone?*
1 = Most often, and 5 = Least often/Never
Rank Mobile Phone Usage Millennial Generation** Overall**
1 Place phone calls 2.03 1.56
2 Text message 2.33 2.56
3 Browse the Web 3.19 3.48
4 Email 3.26 3.18
5 Instant Message (IM) 4.19 4.22
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 12: In what year did you purchase your first Web-
enabled mobile phone? | n = 150 US Millennial Generation Online Consumers | n = 1,539 US Online Consumers
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CONSUMER BEHAVIOR REPORT
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*Data filtered by US Millennial Generation (Born 1980 or after) Web-enabled mobile phone owners only and overall US
Web-enabled mobile phone owners ** Mobile phone usage rank is based on consumer segment average (mean) response
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_09
Future Mobile Internet Shopping Trends – U.S. Online Consumers
Using a mobile phone to compare prices while browsing in a store could be the next
big trend. Fifty-six percent of Apple iPhone owners and 28 percent of smartphone
owners are already comparing prices online with their mobile phones. An additional 27
percent of iPhone owners and 35 percent of smartphone owners anticipate that they
will be comparing prices within two years (see Table 10).
[Table 10] W hen w ill you start using your iPhone or Smartphone to
compare prices online?*
Apple iPhone 56% 13% 8% 6% 17%
Sm artphone (e .g.
28% 13% 12% 10% 37%
Black be r ry, othe r)
A lready use Will use in 6 months Will use in 6-12 months Will use in 12-24 months Not Interested/ Never
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 13: When do you think you will use your mobile
phone for the following online activities? | n = 190 (iPhone) & 539 (smartphone) US Online Consumers
*Data filtered by US iPhone and smartphone mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_10
• One third of online consumers without a Web-enabled phone will purchase one
in the next year. Of those consumers that indicated owning a non Web-enabled
mobile phone, 13 percent said they will purchase a smartphone (other than an
iPhone), 12 percent said they will purchase an iPhone, and seven percent said they
will purchase another type of Web-enabled mobile phone in the next 12 months (see
Table 11).
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[Table 11] W ill you purchase any of
the follow ing W eb-enabled mobile
phones in the next 12 months?*
68%
13% 12%
7%
Non We b-e nable d M obile Phone
Smartphone (e.g., Blackberry, other)
A pple iPhone
Other Web-enabled phone
No, I am happy w ith my current phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 15: Will you purchase any of the
following Web-enabled mobile phones in the next 12 months? | n = 1,133 US Online Consumers
*Data filtered by US non Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_11
Mobile Internet Shopping Trends – U.K. Online Consumers
In the UK mobile phone ownership and usage is more mainstream than that of the United
States. According to a report released by Informa Telecoms and Media, 30 countries
passed the 100% mark in Q1 2008. Some, such as the UK, Sweden and Italy, have
already exceeded 110% in mobile phone penetration, in terms of SIM card ownership to
population size.4 As a result mobile Internet consumer adoption is more widespread in the
UK compared to that of the United States.
• Web-enabled mobile phone penetration exceeds that of the United States. More
than two-thirds of UK online consumers own a mobile phone capable of connecting
with the Internet compared to 58 percent of US online consumers. Thirty-one percent
of UK online consumers indicated owning a non Web-enabled phone capable of voice
and text service plans only (see Table 12).
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[Table 12] UK Online Consumers:
W hat type of mobile phone do you ow n?*
17% 7% 0%
31%
45%
Non Web mobile phone (i.e. voice and text capabilities only)
Web-enabled phone (i.e. voice, text and data capabilities)
Smartphone (e.g. Blackberry, other)
A pple iPhone
I don't ow n a mobile phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 2: What type of mobile phone
do you own? | n = 560 UK Online Consumers
*Data filtered by UK Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_12
• The 3G network coverage in the UK is expansive. Sixty-four percent of UK online
consumers own a 3G compatible Web-enabled mobile phone compared to only 48
percent of US online consumers (see Table 13). In the UK the mobile network 3
(Three) boasts that 90% of the UK’s population is covered with 3G, and 99% with the
standard talk and text network (2G/2.5G/EDGE). 5
[Table 13] UK Online Consumers:
Is your current W eb-enabled phone 3G
compatible?*
15%
21%
64%
Yes No Uns ure
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 4: Is your current Web-
enabled phone 3G compatible? | n = 355 UK Online Consumers
*Data filtered by UK Web-enabled mobile phone owners
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_13
• UK online consumers made more substantial purchases from their mobile
phones. Of the nine percent of online consumers who have purchased from their
mobile phone in the last 12 months, 50 percent purchased computers, laptops or
related equipment (see Table 14). While US online consumers primarily purchased
digital content, which is generally easy to buy, affordably priced, and available for
nearly all handsets, UK online consumers made a wider variety of mobile purchases,
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CONSUMER BEHAVIOR REPORT
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including: computers and laptops (50%), books (47%), digital content (46%),
consumer electronics (43%), and clothing (32%).
[Table 14] W hat types of products have you purchased from your
mobile phone in the past 12 months?* Select all that apply
Computers, laptops or related equipment 50%
Books 47%
Digital content f or my mobile phone (e.g.
46%
ringtones, A pps, music, video clips)
Consumer electronics 43%
Clothing 32%
Jew elry and w atches 4%
Other 4%
9% of Cons um e r s Who Purchas e fr om a M obile Phone
Source: PriceGrabber.com
Base: Mobile Phone Online Shopping Survey 3/10/09-3/31/09 | Question 13: When do you think you will use your mobile
phone for the following online activities? | n = 60 UK Online Consumers
*Data filtered by UK consumers who purchase from their Web-enabled mobile phone
Image link: http://www.pricegrabber.com/about_pr_img.php/img=2009_04_16_14
Supplemental Material
Methodology
The data, market trends and analysis in this report were prepared by PriceGrabber.com.
The data included in this report is sourced from the Mobile Shopping Behavior Survey.
For the PriceGrabber.com Mobile Shopping Behavior Survey conducted between March
10, 2009 and March 31, 2009, we designed and fielded an online survey to reach each
consumer who recently made an online purchase from one of our 13,000 retailers and
sellers. Of nearly 11 million PriceGrabber.com visitors between March 10, 2009 and
March 31, 2009, a total of 506,878 US online consumers were invited to take the survey
and 3,305 adequately completed the survey. Of more than one million PriceGrabber.co.uk
visitors between March 10, 2009 and March 31, 2009, a total of 560 adequately
completed the survey. The online survey was comprised of 18 close-ended questions.
Respondents were asked about their mobile phone ownership, behaviors, and opinions as
they related to their situation in the current state of the economy. After completing an
online purchase, each online consumer received an email confirmation, which included
the URL to the Web-based survey.
The sample set was balanced with demographic weighted variables – age, gender, and
individual income level – to ensure they were representative of the online population
purchasing products over the 21 days the survey was administered. The survey
completion results showed that 79% of total respondents completed the survey and 21%
partially completed the survey. All cross-tabulation statistics for this report were analyzed
using only quality-controlled, completed responses. The maximum sampling error for the
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CONSUMER BEHAVIOR REPORT
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survey data based on the sample of 3,865 respondents is +/− 3 percentage points at the
95% confidence level.
Disclaimer
This report may not be reproduced, distributed or published by any person for any
purpose without PriceGrabber.com’s prior written consent. Please cite source when
quoting.
Source: PriceGrabber.com
For media inquiries, to schedule phone interviews, or for journalists who would like to
request additional data and a custom survey for their needs, please contact Sara
Rodriguez by email at sara@pricegrabber.com or by phone at (323) 601-1282.
End Notes
1. Source: Is 2009 the year of the mobile Internet? http://econsultancy.com/blog/3019-is-
2009-the-year-of-the-mobile-internet, “Thus far, despite the "hype," the mobile internet
hasn't developed nearly as quickly on a global scale as many predicted. But is that
finally changing?”
2. Source: Maximizing the Mobile Commerce Experience,
http://www.ecommercetimes.com/story/66795.html, “Adding to this trend, there are
now more than 40 million active monthly users of the mobile Internet in the U.S. alone,
according to Nielsen Mobile -- a 73 percent increase since 2006.”
3. Source: Maximizing the Mobile Commerce Experience,
http://www.ecommercetimes.com/story/66795.html, “When consumers navigate the
online channel, they expect a high-quality experience whether they are on a mobile
device or at their desktop.”
4. Source: 30 Countries Passed 100% Mobile Phone Penetration in Q1,
http://www.telecommagazine.com/newsglobe/article.asp?HH_ID=AR_2148, “Marking
a major mobile milestone, 30 countries had exceeded 100% cell phone penetration by
the end of the first quarter of this year, according to a report released today by Informa
Telecoms and Media. The group predicts that country count will reach 40 by year-end,
noting that some countries, such as the UK, Sweden and Italy have already exceeded
110%.”
5. Source: 3 Contract Mobile Phones, http://www.moneysupermarket.com/c/mobile-
phones/3/4/contract/networks/ and http://en.wikipedia.org/wiki/3G, “In the UK the
mobile network 3 (Three) boasts that 90% of the UK’s population is covered with 3G,
and 99% with the standard talk and text network (2G/2.5G/EDGE).”
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